BILL NUMBER: AB 2939	CHAPTERED  09/29/00

	CHAPTER   890
	FILED WITH SECRETARY OF STATE   SEPTEMBER 29, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 28, 2000
	PASSED THE ASSEMBLY   AUGUST 28, 2000
	PASSED THE SENATE   AUGUST 25, 2000
	AMENDED IN SENATE   AUGUST 22, 2000
	AMENDED IN SENATE   AUGUST 8, 2000
	AMENDED IN ASSEMBLY   MAY 16, 2000

INTRODUCED BY   Committee on Natural Resources (Wayne (Chair),
Aanestad (Vice Chair), Dickerson, Jackson, Keeley, Lowenthal,
Machado, Migden, Oller, Robert Pacheco, and Steinberg)

                        MARCH 28, 2000

   An act to amend Sections 39510, 39512.5, 39513, 39515, 39604,
39671, 39807, 40162, 40450, 40452, 40454, 40500.1, 40503, 40515,
40521, 40709.7, 40717.5, 41261, 41500, 41500.5, 41600, 41865,
42301.5, 42301.9, 42314, 42314.5, and 42405.1 of, to repeal and add
Section 39016.5 of, and to repeal Sections 40416, 40484, 40524,
40962, 41212, 41242, 41263, 41507, 41518, 41519, 41520, 41704.5,
41900, and 41981 of, the Health and Safety Code, relating to air
resources.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2939, Committee on Natural Resources.  Air resources.
   Existing law contains a comprehensive plan to protect and enhance
the ambient air quality of the state.
   This bill would make technical changes to those provisions,
including correcting erroneous cross-references and deleting obsolete
provisions.
   This bill would incorporate additional changes in Section 41865 of
the Health and Safety Code proposed by AB 2889 to become operative
only if both bills are enacted, as specified, and become operative on
or before January 1, 2001, and this bill is enacted last.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 39016.5 of the Health and Safety Code is
repealed.
  SEC. 2.  Section 39016.5 is added to the Health and Safety Code, to
read:
   39016.5.  "Bureau" means the Bureau of Automotive Repair in the
Department of Consumer Affairs.
  SEC. 3.  Section 39510 of the Health and Safety Code is amended to
read:
   39510.  (a) The State Air Resources Board is continued in
existence in the California Environmental Protection Agency.  The
state board shall consist of 11 members.
   (b) The members shall be appointed by the Governor, with the
consent of the Senate, on the basis of their demonstrated interest
and proven ability in the field of air pollution control and their
understanding of the needs of the general public in connection with
air pollution problems.  Six members shall have the following
qualifications:
   (1) One member shall have training and experience in automotive
engineering or closely related fields.
   (2) One member shall have training and experience in chemistry,
meteorology, or related scientific fields, including agriculture or
law.
   (3) One member shall be a physician and surgeon or an authority on
health effects of air pollution.
   (4) Two members shall be public members.
   (5) One member shall have the qualifications specified in
paragraph (1), (2), or (3) or shall have experience in the field of
air pollution control.
   (c) Five members shall be board members from districts who shall
reflect the qualitative requirements of subdivision (b) to the extent
practicable.  Of these five members, one shall be a board member
from the south coast district, one shall be a board member from the
bay district, one shall be a board member from the San Joaquin Valley
Unified Air Pollution Control District or, if the unified district
is abolished, from the San Joaquin Valley Air Quality Management
District if created pursuant to Section 5 of Chapter 915 of the
Statutes of 1994, one shall be a board member from the San Diego
County Air Pollution Control District, and one shall be a board
member of any other district.
   (d) Any vacancy shall be filled by the Governor within 30 days of
the date on which it occurs.  If the Governor fails to make an
appointment for any vacancy within the 30-day period, the Senate
Committee on Rules may make the appointment to fill the vacancy in
accordance with this section.
   (e) While serving on the state board, all members shall exercise
their independent judgment as officers of the state on behalf of the
interests of the entire state in furthering the purposes of this
division.  No member of the state board shall be precluded from
voting or otherwise acting upon any matter solely because that member
has voted or acted upon the matter in his or her capacity as a
member of a district board, except that no member of the state board
who is also a member of a district board shall participate in any
action regarding his or her district taken by the state board
pursuant to Sections 41503 to 41505, inclusive.
   (f) Notwithstanding subdivision (e) of Section 1 of Chapter 1201
of the Statutes of 1991, this section shall become operative on
January 1, 1994.
  SEC. 4.  Section 39512.5 of the Health and Safety Code is amended
to read:
   39512.5.  (a) With respect to the members appointed pursuant to
subdivision (c) of Section 39510, those members shall serve without
compensation but shall be reimbursed for actual and necessary
expenses incurred in the performance of their duties to the extent
that reimbursement for expenses is not otherwise provided or payable
by another public agency or agencies.  Each elected public official
member of the state board shall receive one hundred dollars ($100)
for each day, or portion thereof, but not to exceed one thousand
dollars ($1,000) in any month, attending meetings of the state board
or committees thereof, or upon authorization of the state board while
on official business of the state board.
   (b) Reimbursements made pursuant to subdivision (a) shall be made
as follows:
   (1) A member appointed from a district that is specifically named
in subdivision (c) of Section 39510 shall be reimbursed by the
district from which the person qualified for membership.
   (2) The member appointed as a board member of a district that is
not specifically named in subdivision (c) of Section 39510 shall be
reimbursed by the state board.
  SEC. 5.  Section 39513 of the Health and Safety Code is amended to
read:
   39513.  The state board shall hold regular meetings at least twice
a month.  Special meetings may be called by the chair or upon the
request of a majority of the members.  Each member of the state board
shall receive  reimbursement for actual necessary traveling expenses
incurred in the performance of official duties.  Time spent in these
board meetings shall count toward the sixty hours per month work
requirement specified in Section 11564 of the Government Code.
  SEC. 6.  Section 39515 of the Health and Safety Code is amended to
read:
   39515.  (a) The state board shall appoint an executive officer who
shall serve at the pleasure of the state board and, except as
provided in subdivision (d), may delegate any duty to the executive
officer that the state board deems appropriate.
   (b) The intention of the Legislature is hereby declared to be that
the executive officer shall perform and discharge, under the
direction and control of the state board, the powers, duties,
purposes, functions, and jurisdiction vested in the state board and
delegated to the executive officer by the state board.
   (c) The state board shall, upon the receipt of a petition from any
affected member of the public, affected district, or designated air
quality planning agency, hold a public hearing to review any action
taken by the executive officer pursuant to Section 41650, 41651, or
41652.
   (d) Any action taken by the executive officer pursuant to Section
40469 or Sections 41503 to 41505, inclusive, shall be subject to
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code.
  SEC. 7.  Section 39604 of the Health and Safety Code is amended to
read:
   39604.  (a) The state board shall submit to the Governor and the
Legislature, not later than January 1, 1985, and every two years
thereafter, a biennial report on air quality conditions and trends
statewide and on the status and effectiveness of state and local air
quality programs.
   (b) The report shall include, but not be limited to, all of the
following:
   (1) A review of air quality trends in each air basin over the most
recent five-calendar-year period for which a complete data record is
available.
   (2) A statement of the number of violations of air quality
standards that occurred in each air basin over the most recent two
calendar years for which a complete data record is available, and a
comparison of the number of violations to those in prior years.
   (3) A listing of any changes in state ambient air quality
standards adopted by the board over the previous two calendar years.

   (4) A summary of the results of research projects concluded during
the previous two years, the status of current research projects, and
the conduct of the research program pursuant to Section 39703.
   (5) A summary of any actions taken by the state board to assume
the powers of districts under Section 39808.
   (6) A summary of the effects of any significant federal actions
over the previous two years that have affected state air quality or
air quality programs.
   (7) A summary of the status of the state implementation plan for
achieving and maintaining ambient air quality standards.
   (8) A summary of the state board's actions in the previous two
calendar years to control toxic air pollutants pursuant to Chapter
3.5 (commencing with Section 39650).
   (9) A summary of actions of the state board in controlling
emissions from motor vehicles during the previous two-year period.
   (10) A summary of significant actions taken by districts to
control emissions from nonvehicular sources during the previous
two-year period.  This summary shall not include a district by
district analysis for each district in the state, but shall include
an overall analysis.
   (11) A list of recommendations for legislation or administrative
actions to resolve specific air quality problems in the state.
  SEC. 8.  Section 39671 of the Health and Safety Code is amended to
read:
   39671.  The terms of the members of the Scientific Review Panel on
Toxic Air Contaminants appointed pursuant to subdivision (b) of
Section 39670 shall be staggered so that the terms of three members
expire each year.
  SEC. 9.  Section 39807 of the Health and Safety Code is amended to
read:
   39807.  The subvention otherwise due a district may be reduced by
the state board up to an amount equal to the funds that are granted
to the district by the federal government. In so reducing a
subvention, the state board shall take into account all of the
following factors:
   (a) The purpose for which the federal funds were granted.
   (b) The needs of the district in relationship to the needs of
other districts.
   (c) Any special and worthy programs conducted by the district not
required by the plan or program approved by the state board pursuant
to Section 41500.
   (d) The severity of air pollution within the district.
   (e) Any other factors that the state board reasonably determines
should be considered.
  SEC. 10.  Section 40162 of the Health and Safety Code is amended to
read:
   40162.  Funding of the San Joaquin Valley Unified Air Pollution
Control District, or, if the unified district ceases to exist, of the
valley district if created pursuant to Section 5 of Chapter 915 of
the Statutes of 1994, may be provided by, but is not limited to,
grants, subventions, permit fees, penalties, and vehicle license
fees.  Notwithstanding any other provision of law, no funding
contribution shall be required from the counties or cities included
in the unified district or valley district.
  SEC. 11.  Section 40416 of the Health and Safety Code is repealed.

  SEC. 12.  Section 40450 of the Health and Safety Code is amended to
read:
   40450.  Except as provided in Section 40449 regarding the adoption
of stricter orders, rules, and regulations than those of the south
coast district board, the board of supervisors of any county
included, in whole or in part, within the south coast district shall
have no authority, with respect to the control of air pollution in
that part of the county included within the south coast district.
  SEC. 13.  Section 40452 of the Health and Safety Code is amended to
read:
   40452.  The south coast district shall submit an annual report to
the state board and the Legislature summarizing its regulatory
activities for the preceding calendar year.  The report shall include
all of the following:
   (a) A summary of each major rule and rule amendment adopted by the
south coast district board.  The summary shall include emission
reductions to be accomplished by each rule or regulation; the cost
per ton of emission reduction to be achieved from each rule or
regulation; other alternatives that were considered through the
environmental assessment process; the cost per ton of comparable
emission reductions that could have been achieved from each
alternative; a statement of the reason why a given alternative was
chosen; the conclusions and recommendations of the district's
socioeconomic analysis, including any evaluations of employment
impacts; and the source of funding for the rule or regulation.  For
the purposes of this subdivision, a major rule or rule amendment is
one that is intended to significantly affect air quality or that
imposes emission limitations.
   (b) The number of permits to operate or to construct, by type of
industry, that are issued and denied, and the number of permits to
operate that are not renewed.
   (c) Data on emission offset transactions and applications, by
pollutant, during the previous fiscal year, including an accounting
of the number of applications for permits for new or modified sources
that were denied because of the unavailability of emission offsets.

   (d) The district's forecast of budget and staff increases proposed
for the following fiscal year, and projected for the next two fiscal
years.  Budget and staff increases shall be related to existing
programs and rules, and to new programs or rules to be adopted during
the following years.  The budget forecast shall provide a workload
justification for proposed budget and staff changes and shall
identify any cost savings to be achieved by program or staff changes.
  The budget forecast shall include increases in permit fees and
other fees proposed for the following fiscal year and projected for
the next two fiscal years.
   (e) An identification of the source of all revenues collected that
are used, or proposed to be used, to finance activities related to
either stationary or nonstationary sources.
   (f) A response to audit recommendations pursuant to  Section
40453.  The response shall include proposed statutory changes needed
to implement the recommendations.
   (g) The results of the clean fuels program as specified in Section
40448.5.  This element of the report shall be submitted biennially.

  SEC. 14.  Section 40454 of the Health and Safety Code is amended to
read:
   40454.  (a) Notwithstanding Section 40716 or 40717, or subdivision
(c) of Section 40717.5, the south coast district shall not adopt or
enforce any rule or regulation that would require any employer to
submit a trip reduction plan.
   (b) The south coast district may require employers with 100 or
more employees at a single worksite to provide ride-matching
information and transit information to employees at that worksite.
  SEC. 15.  Section 40484 of the Health and Safety Code is repealed.

  SEC. 16.  Section 40500.1 of the Health and Safety Code is amended
to read:
   40500.1.  (a) Except as required to comply with the Clean Air Act
(42 U.S.C. Sec. 7401 et seq.), fees assessed on stationary sources in
the south coast district pursuant to Sections 40500 and 40510 shall
not exceed, for any fiscal year, the actual costs of district
programs pursuant to this article for the immediately preceding
fiscal year with an adjustment not greater than the change in the
California Consumer Price Index, for the preceding calendar year,
from January 1 of the prior year to January 1 of the current year, as
determined by the Department of Industrial Relations.
   (b) Unless specifically authorized by statute, the total amount of
all of the fees collected by the south coast district from
stationary sources of emissions in the 1995-96 fiscal year, and in
each subsequent fiscal year, shall not exceed the level of
expenditure in the 1993-94 fiscal year, except that the total fee
amount may be adjusted annually by not more than the percentage
increase in the California Consumer Price Index, as specified in
subdivision (a).
   (c) Any new state or federal mandate that is applicable to the
south coast district on and after January 1, 1994, shall not be
subject to this section.
  SEC. 17.  Section 40503 of the Health and Safety Code is amended to
read:
   40503.  (a) The south coast district hearing board, in determining
whether the petitioner has presented evidence sufficient to make the
findings specified in subdivision (a) of Section 42352, shall
consider, in addition to any other relevant factors, both of the
following:
   (1) In determining whether conditions exist that are beyond the
reasonable control of the petitioner, the hearing board shall
consider whether the petitioner took actions to comply or seek a
variance, that were timely and reasonable under the circumstances.
In so doing, the hearing board shall consider actions taken by the
petitioner since the adoption of the rule from which the variance is
sought.
   (2) In determining whether requiring compliance would result in
either an arbitrary or unreasonable taking of property or the
practical closing and elimination of a lawful business, the hearing
board shall consider whether an unreasonable burden would be imposed
upon the petitioner if immediate compliance is required.
   (b) (1) As used in this subdivision, "small business" means a
business that is independently owned and operated and meets all of
the following criteria:
   (A) The number of employees is 10 or less.
   (B) The total gross annual receipts are five hundred thousand
dollars ($500,000) or less.
   (C) Emits not more than four tons per year of any nonattainment
air contaminant or its precursor.
   (2) If the petitioner is a small business, the hearing board shall
consider the factors specified in subdivision (a) in the following
manner:
   (A) In determining whether the petitioner took timely actions to
comply or seek a variance, the hearing board shall make specific
inquiries into the reasons for any claimed ignorance of the
requirement from which a variance is sought.
   (B) In determining whether the petitioner took reasonable actions
to comply, the hearing board shall make specific inquiries into the
petitioner's financial and other capabilities to comply.
   (C) In determining whether the burden of requiring immediate
compliance would be unreasonable, the hearing board shall make
specific inquiries into, and shall balance, the impact to the
petitioner's business and the benefit to the environment that would
result if the petitioner is required to immediately comply.
   (c) Where the petitioner is a governmental agency, public
district, or any other governmental or public entity, in determining
whether an unreasonable burden would be imposed, the hearing board
shall consider any effects of requiring immediate compliance on the
availability of essential public services.
  SEC. 18.  Section 40515 of the Health and Safety Code is amended to
read:
   40515.  (a) Any public utility owned by a municipal corporation
within the south coast district shall provide public notice, pursuant
to subdivision (b), before submitting to the board of the south
coast district any application for a permit to construct or operate
any facility, machine, or contrivance that would be used for water
treatment and would emit toxic air contaminants.
   (b) A public utility specified in subdivision (a) shall mail,
post, deliver, or use any other practical method to notify all
residents and persons who own property within 330 feet of the
property containing the proposed facility, machine, or contrivance.
The notice shall include a description of the proposed facility,
machine, or contrivance and an explanation of the right to petition
the south coast district board to hold a hearing pursuant to Section
40509.
  SEC. 19.  Section 40521 of the Health and Safety Code is amended to
read:
   40521.  (a) For each fiscal year, the percentage increase in the
county apportionments by the south coast district board may not
exceed the percentage increase in the California Consumer Price Index
as specified in Section 2212 of the Revenue and Taxation Code, or
the percentage increase in the total county property tax revenues for
the counties included, in whole or in part, within the south coast
district, whichever is greater.
   (b) The limitations specified in subdivision (a) shall not apply
to increases in apportionments resulting from the termination of
federal or state allocations to the south coast district, if the
south coast district board votes to continue the programs financed
with those funds.
  SEC. 20.  Section 40524 of the Health and Safety Code is repealed.

  SEC. 21.  Section 40709.7 of the Health and Safety Code is amended
to read:
   40709.7.  (a) For the purposes of this section, "military base"
means a military base that is designated for closure or downward
realignment pursuant to the Defense Base Closure and Realignment Act
of 1988 (P.L.  100-526) or the Defense Base Closure and Realignment
Act of 1990 (10 U.S.C.  Sec. 2687 et seq.).
   (b) For the purposes of this section, "base reuse authority" means
the authority recognized pursuant to Section 65050 of the Government
Code.
   (c) An appropriate entity of the federal government may apply to
the district for emission reduction credits that result from reduced
emissions from a military base by June 1, 1995, or within 180 days of
the reduction in emissions, whichever occurs later, if the federal
government is eligible under district regulations to file and receive
emission reduction credits on December 31, 1994.
   (d) Not later than July 1, 1995, or six months from the date that
the base closure or realignment decision becomes final, whichever
occurs last, the district shall request and attempt to obtain all
records maintained by a military base that are necessary to quantify
emission reductions, including, but not limited to, records on the
operation of any equipment that emits air contaminants, provided that
the district either waives the payment of direct costs to obtain the
records or enters into an agreement with the appropriate entity of
the federal government or the base reuse authority for the payment of
the direct costs to obtain the records.  The district shall maintain
these records.
   (e) (1) A base reuse authority may apply to a district, under the
emission reductions banking system established pursuant to Section
40709, for any reductions in emissions related to the termination or
reduction of operations at the military base under its jurisdiction.

   (2) The district shall quantify and bank the emission reductions
for a closing or realigning military base within 180 days of a
request by a base reuse authority and payment of any applicable fees,
if one of the following events has occurred:
   (A) The federal government agrees in writing to allow the base
reuse authority to apply for and receive the emission reduction
credits.
   (B) The time period for the federal government to apply for
emission reduction credits pursuant to subdivision (c) has expired
and the federal government has not applied for the credits.
   (C) The base reuse authority has, pursuant to other legal means,
obtained the authority to acquire the emission reduction credits.
   (f) The district shall permanently retire the emission reduction
credits obtained pursuant to this section by 5 percent to improve air
quality.
   (g) The baseline for quantifying emission reductions shall be the
date that the base closure or realignment decision becomes final.
The two-year period ending on the date that the base closure or
realignment decision was made shall be used to determine average
emissions from the military base unless this two-year period is not
representative of normal operations, in which case an alternative,
consecutive, two-year period that is within the five years prior to
the baseline date may be used, as determined by the district.
   (h) After registration, certification, or other approval of the
emission reductions by a district air pollution control officer
pursuant to subdivision (a) of Section 40709 and this section, the
base reuse authority shall be deemed the owner of the emissions
source for purposes of the issuance of a certificate pursuant to
Section 40710.  Upon receipt of the certificate, or other approval,
the base reuse authority may use, sell, or otherwise dispose of the
emission reduction credits as determined by the base reuse authority,
provided that the credits may only be used for base reuse within the
jurisdiction of the district.
  SEC. 22.  Section 40717.5 of the Health and Safety Code is amended
to read:
   40717.5.  (a) Any district that proposes to adopt or amend a rule
or regulation pursuant to Section 40716 or 40717, which imposes any
requirement on an indirect source to reduce vehicle trips or vehicle
miles traveled, including, but not limited to, any rule or regulation
affecting ridesharing or alternative transportation mode strategies,
shall, prior to the adoption or amendment of the rule or regulation,
do all of the following:
   (1) Ensure, to the extent feasible, and based upon the best
available information, assumptions, and methodologies that are
reviewed and adopted at a public hearing, that the proposed rule or
regulation would require an indirect source to reduce vehicular
emissions only to the extent that the district determines that the
source contributes to air pollution by generating vehicle trips that
would not otherwise occur.  In complying with this paragraph, a
district shall make reasonable and feasible efforts to assign
responsibility for existing and new vehicle trips in a manner that
equitably distributes responsibility among indirect sources.
   (2) Ensure that, to the extent feasible, the proposed rule or
regulation does not require an indirect source to reduce vehicular
trips that are required to be reduced by other rules or regulations
adopted for the same purpose.
   (3) Take into account the feasibility of implementing the proposed
rule or regulation.
   (4) Pursuant to Section 40922, consider the cost effectiveness of
the proposed rule or regulation.
   (5) Determine that the proposed rule or regulation would not place
any requirement on public agencies or on indirect sources that would
duplicate any requirement placed upon those public agencies or
indirect sources as a result of another rule or regulation adopted
pursuant to Section 40716 or 40717.
   (b) A district may delegate to any city or county the
responsibility to implement a rule or regulation that is subject to
subdivision (a).  However, if an indirect source subject to the rule
or regulation has sites located both within and outside of the
jurisdiction of a city or county to which that responsibility has
been delegated, the indirect source may elect to be subject to the
implementation of that rule or regulation only by the district.
Notwithstanding Section 40454, an indirect source that elects to be
regulated only by a district pursuant to this subdivision may also
elect to include sites under district regulation that would not
otherwise be subject to district regulation, and, in that event,
shall not be subject to the implementation by a city or county of any
requirement contained in that rule or regulation.
   (c) (1) Nothing in this section constitutes an infringement on the
existing authority of counties and cities to plan, control, or
condition land use, or on the ability of a city, county, or other
public agency to impose trip reduction measures pursuant to a
voter-mandated growth management program.
                                                                 (2)
Nothing in this section provides or transfers new authority over land
use to a district.
  SEC. 23.  Section 40962 of the Health and Safety Code is repealed.

  SEC. 24.  Section 41212 of the Health and Safety Code is repealed.

  SEC. 25.  Section 41242 of the Health and Safety Code is repealed.

  SEC. 26.  Section 41261 of the Health and Safety Code is amended to
read:
   41261.   The air pollution control officer (APCO) and designated
deputies of the Mojave Desert District shall serve at the pleasure of
the Mojave Desert district board, and shall receive the compensation
that is determined by the Mojave Desert district board.
  SEC. 27.  Section 41263 of the Health and Safety Code is repealed.

  SEC. 28.  Section 41500 of the Health and Safety Code is amended to
read:
   41500.  To coordinate air pollution control activities throughout
the state, and to ensure that the entire state is, or will be, in
compliance with the standards adopted pursuant to Section 39606, the
state board shall do all of the following:
   (a) Review the district attainment plans submitted pursuant to
Section 40911, and the revised plans submitted pursuant to Section
40925, to determine whether the plans will achieve and maintain the
state's ambient air quality standards by the earliest practicable
date.
   (b) Review the rules and regulations and programs submitted by the
districts pursuant to Section 40704 to determine whether they are
sufficiently effective to achieve and maintain the state ambient air
quality standards.
   (c) Review the enforcement practices of the districts and local
agencies delegated authority by districts pursuant to Section 40717
to determine whether reasonable action is being taken to enforce
their programs, rules, and regulations.
  SEC. 29.  Section 41500.5 of the Health and Safety Code is amended
to read:
   41500.5.  Notwithstanding any other provision of law, any plan
required by this division shall be subject to Article 5.5 (commencing
with Section 53098) of Chapter 1 of Part 1 of Division 2 of Title 5
of the Government Code.
  SEC. 30.  Section 41507 of the Health and Safety Code is repealed.

  SEC. 31.  Section 41518 of the Health and Safety Code is repealed.

  SEC. 32.  Section 41519 of the Health and Safety Code is repealed.

  SEC. 33.  Section 41520 of the Health and Safety Code is repealed.

  SEC. 34.  Section 41600 of the Health and Safety Code is amended to
read:
   41600.  (a) The districts shall provide for, and shall
periodically revise as appropriate, the growth allowances necessary
to accommodate the net air quality impact, if any, of cogeneration
technology projects and resource recovery projects permitted pursuant
to Section 42314, so that state and federal ambient air quality
standards may be achieved and maintained or that reasonable further
progress be made toward attainment.
   (b) If appropriate, the districts shall submit to the state board,
for inclusion in the next state implementation plan revisions, the
necessary control measures for the growth allowances for federally
approved nonattainment pollutants and precursors  required by
subdivision (a).
   (c) Any district that lacks a federally approved demonstration of
attainment with the national ambient air quality standard for ozone
or nitrogen dioxide is  not required to provide a growth allowance
for any pollutant under this section until two years after the
district makes both demonstrations.  Federal approval shall be
determined, based on regulations adopted by the Environmental
Protection Agency, after public notice and opportunity for comment.
After a district demonstrates attainment, the district may establish
a growth allowance by allocating an air quality increment within the
ambient air quality standard or through adoption of further control
measures.
  SEC. 35.  Section 41704.5 of the Health and Safety Code is
repealed.
  SEC. 36.  Section 41865 of the Health and Safety Code is amended to
read:
   41865.  (a) This section shall be known, and may be cited, as the
Connelly-Areias-Chandler Rice Straw Burning Reduction Act of 1991.
   (b) As used in this section:
   (1) "Sacramento Valley Air Basin" means the area designated by the
state board pursuant to Section 39606.
   (2) "Air pollution control council" means the Sacramento Valley
Basinwide Air Pollution Control Council authorized pursuant to
Section 40900.
   (3) "Conditional rice straw burning permit" means a permit to burn
granted pursuant to subdivisions (f) and (h).
   (4) "Allowable acres to be burned" means the number of acres that
may be burned pursuant to subdivision (c).
   (5) "Department" means the Department of Food and Agriculture.
   (6) "Maximum fall burn acres" means the maximum amount of rice
acreage that may be burned from September 1 to December 31,
inclusive, of each year.
   (7) "Maximum spring burn acres" means the maximum amount of rice
acreage that may be burned from January 1 to May 31 of the following
year, inclusive.
   (c) Notwithstanding Section 41850, rice straw burning in counties
in the Sacramento Valley Air Basin shall be phased down, as follows:

   (1) From 1998 to 2000, the maximum spring and fall burn acres
shall be the following number of acres planted prior to September 1
of each year:


             Maximum Fall Burn          Maximum Spring Burn
   Year            Acres                      Acres
   1998            90,000                    110,000
   1999            90,000                    110,000
   2000            90,000                    110,000


   (2) Notwithstanding paragraph (1), any of the 90,000 acres
allocated in the fall that are not burned may be added to the maximum
spring burn acres, provided that the maximum spring burn acres does
not exceed 160,000 acres.
   (3) Notwithstanding paragraph (1), the maximum acres burned
between January 1, 1998, and August 31, 1998, shall be limited so
that the total acres burned between September 1, 1997, and August 31,
1998, do not exceed 38 percent of the total acres planted prior to
September 1, 1997.
   (4) In 2001 and thereafter, the maximum annual burn acres shall be
the number of acres prescribed in subdivision (i), subject to
subdivisions (f) and (h).
   (d) The number of allowable acres to be burned each day shall be
determined by the state board and the air pollution control officers
in the Sacramento Valley Air Basin and equitably allocated among rice
growers in accordance with the annual agricultural burning plan
adopted by the air pollution control council and approved by the
state board.
   (e) On or before September 1, 2000, the state board, in
consultation with the department and the air pollution control
council, shall adopt regulations consistent with the criteria
provided in subdivisions (f) and (h).  On or before September 1,
1996, an advisory group shall be established by the state board and
the department to assist in the adoption of those regulations.
   (f) Commencing September 1, 2001, the county air pollution control
officers in the Sacramento Valley Air Basin may grant conditional
rice straw burning permits once the county agricultural commissioner
has determined that the applicant has met the conditions specified in
subdivision (h).  The county agricultural commissioner shall be
responsible for all field inspections associated with the issuance of
conditional rice straw burning permits.  A conditional rice straw
burning permit shall be valid for only one burn, per field, per year.

   (g) The county agricultural commissioner may charge the applicant
a fee not to exceed the costs incurred by the county agricultural
commissioner in making the determination specified in subdivision
(f).  This subdivision shall be operative only until January 1, 2009.

   (h) If the terms and conditions for issuing conditional rice straw
burning permits specified in paragraphs (1) to (4), inclusive, are
met, a conditional rice straw burning permit may be issued unless the
state board and the department have jointly determined, based upon
an annual review process, that there are other economically and
technically feasible alternative means of eliminating the disease
that are not substantially more costly to the applicant.  The terms
and conditions for issuing the conditional rice straw burning permits
are:
   (1) The fields to be burned are specifically described.
   (2) The applicant has not violated any provision of this section
within the previous three years.
   (3) During the growing season, the county agricultural
commissioner has independently determined the significant presence of
a pathogen in an amount sufficient to constitute a rice disease such
as stem rot.
   (4) The county agricultural commissioner makes a finding that the
existence of the pathogen as identified in paragraph (3) will likely
cause a significant, quantifiable reduction in yield in the field to
be burned during the current or next growing season.  The findings of
the county agricultural commissioner shall be based on
recommendations adopted by the advisory group established pursuant to
subdivision (e).
   (i) (1) The maximum annual number of acres burned in the
Sacramento Valley Air Basin pursuant to paragraph (4) of subdivision
(c) shall be the lesser of:
   (A) The total of 25 percent of each individual applicant's planted
acres that year.
   (B) A total of 125,000 acres planted in the Sacramento Valley Air
Basin.
   (2) Each grower shall be eligible to burn up to 25 percent of the
grower's planted acres, as determined by the air pollution control
officers in the Sacramento Valley Air Basin and subject to the
maximum annual number of acres burned set forth in paragraph (1), if
the grower has met the criteria for a conditional rice straw burning
permit.
   (3) The air pollution control council shall annually determine
which is the lesser of subparagraphs (A) and (B) of paragraph (1),
and shall determine the maximum percentage applicable to all growers
subject to the conditions set forth in subdivisions (f) and (h).
   (4) A grower who owns or operates 400 acres or less who has met
the criteria for the issuance of a conditional rice straw burning
permit may burn his or her entire acreage once every four years,
provided that the limit prescribed in paragraph (1) is not exceeded.

   (5) Nothing in this subdivision shall permit an applicant to
transfer, sell, or trade any permission to burn granted pursuant to
this subdivision to another applicant or individual.
   (j) The state board and the department shall jointly determine if
the allowable acres to be burned, as provided in subdivisions (c),
(f), and (h), may be exceeded due to extraordinary circumstances,
such as an act of God, that have an impact over a continuing duration
and make alternatives other than burning unusable.
   (k) "Administrative burning" means burning of vegetative materials
along roads, in ditches, and on levees adjacent to or within a rice
field, or the burning of vegetative materials on rice research
facilities authorized by the county agricultural commissioner, not to
exceed 2,000 acres.  Administrative burning conducted in accordance
with Section 41852 is not subject to this section.
   (l) (1) On or before September 1, 1992, the state board and the
department shall jointly establish an advisory committee composed of
10 members to assist with the identification and implementation of
alternatives to rice straw burning.  Members of the committee shall
be from the Sacramento Valley Air Basin, and the committee shall
consist of two rice growers, two representatives from the
environmental community, two health officials, two county supervisors
or their designees, one member from the air pollution control
council, and one member from the business community with expertise in
market or product development.  The committee shall meet at least
annually.  General Fund moneys shall not be used to support the
committee.
   (2) The committee shall develop a list of priority goals for the
development of alternative uses of rice straw for the purpose of
developing feasible and cost-effective alternatives to rice straw
burning.  These goals shall include, but not be limited to, research
on alternatives, economic incentives to encourage alternative uses,
and new product development.
   (m) On or before September 1, 1998, the state board, in
consultation with the department, the advisory committee, and the
Department of Commerce, shall develop an implementation plan and a
schedule to achieve diversion of not less than 50 percent of rice
straw produced toward off-field uses by 2000.  Off-field uses may
include, but are not limited to, the production of energy and fuels,
construction materials, pulp and paper, and livestock feed.
   (n) On or before September 1, 1999, the state board and the
department shall jointly report to the Legislature on the progress of
the phasedown of, and the identification and implementation of
alternatives to, rice straw burning.  This report shall include an
economic and environmental assessment, the status of feasible and
cost-effective alternatives to rice straw burning, recommendations
from the advisory committee on the development of alternatives to
rice straw burning, the status of the implementation plan and the
schedule required by subdivision (m), progress toward achieving the
50 percent diversion goal, any recommended changes to this section,
and other issues related to this section.  The report shall be
updated biennially and transmitted to the Legislature not later than
September 1 of each odd-numbered year.  The state board may adjust
the district burn permit fees specified in subdivision (s) to pay for
the preparation of the report and its updates.  The districts shall
collect and remit the adjustment to the state board, which shall
deposit the fees in the Motor Vehicle Account in the State
Transportation Fund.  It shall be the goal of the state board and the
department that the cost of the report and its updates shall not
exceed fifty thousand dollars ($50,000).
   (o) The state board and the California Department of Food and
Agriculture shall jointly collect and analyze all available data
relevant to the air quality and public health impacts and, to the
extent feasible, the economic impacts, that may be associated with
the burning of rice straw pursuant to the schedule provided in
subparagraph (1) of subdivision (c).  On or before July 1, 2001, the
state board shall submit a report to the Legislature presenting its
findings regarding the air quality, public health, and economic
impacts associated with the burning of rice straw pursuant to the
schedule provided in paragraph (1) of subdivision (c).
   (p) The Legislature hereby finds and declares as follows:
   (1) Because of the requirements imposed by this section, rice
straw that was previously burned may present, as solid waste, a new
disposal problem.
   (2) The state should assist local governments and growers in
diverting rice straw from landfills by researching and developing
diversion options.
   (q) It is the intent of the Legislature that all feasible
alternatives to rice straw burning and options for diverting rice
straw from landfills be encouraged.
   (r) This subdivision confirms that reductions in emissions from
rice straw burning qualify for air quality offsets, in accordance
with paragraphs (1) and (2).
   (1) These credits shall meet the requirements specified in state
law and district rules and regulations, and shall comply with
applicable district banking rules established pursuant to Sections
40709 to 40713, inclusive.  Districts are urged to establish banking
systems in accordance with Sections 40709 to 40713, inclusive.  The
state board may adopt regulations to implement this subdivision,
including, but not limited to, consideration of the seasonal and
intermittent nature of rice straw burning emissions.  In developing
the regulations, the state board shall consult with all concerned
parties.  However, emission reduction credits that would otherwise
accrue from reductions in emissions from rice straw burning shall not
be affected or negated by the phasedown of burning, as specified in
subdivision (c).
   (2) Reductions in emissions achieved in compliance with
subdivision (c) that are banked or used as credits shall not be
credited for purposes of attainment planning and progress towards the
attainment of any state or national ambient air quality standard as
required by state and federal law.
   (s) (1) Any person who negligently or intentionally violates any
provision of this article is guilty of a misdemeanor and is subject
to a fine of not more than ten thousand dollars ($10,000),
imprisonment in the county jail for not more than nine months, or by
both that fine and imprisonment.  This subdivision applies only to
agricultural burning in the Sacramento Valley Air Basin.
   (2) Any person who negligently or intentionally violates any
provision in this article is liable for a civil penalty of not more
than ten thousand dollars ($10,000).  This subdivision applies only
to agricultural burning in the Sacramento Valley Air Basin.
   (t) Districts in the Sacramento Valley Air Basin shall impose fees
on growers to cover the cost of implementing this section pursuant
to Section 42311.
   (u) To the extent that resources are available, the state board
and the agencies with jurisdiction over air quality within the
Sacramento Valley Air Basin shall do both of the following:
   (1) Improve responses to citizen complaints, and, to the extent
feasible, immediately investigate and analyze smoke complaints from
the public to identify factors that contribute to complaints and to
develop better smoke control measures to be included in the
agricultural burning plan, keep a record of all complaints,
coordinate among other agencies on citizens' complaints, and
investigate the source of the pollution causing the complaint.
   (2) Respond more quickly to requests for update from county air
pollution control officers to help maximize burning days when
meteorological conditions are best suited for smoke dispersion.
  SEC. 36.5.  Section 41865 of the Health and Safety Code is amended
to read:
   41865.  (a) This section shall be known, and may be cited, as the
Connelly-Areias-Chandler Rice Straw Burning Reduction Act of 1991.
   (b) As used in this section:
   (1) "Sacramento Valley Air Basin" means the area designated by the
state board pursuant to Section 39606.
   (2) "Air pollution control council" means the Sacramento Valley
Basinwide Air Pollution Control Council authorized pursuant to
Section 40900.
   (3) "Conditional rice straw burning permit" means a permit to burn
granted pursuant to subdivisions (f) and (h).
   (4) "Allowable acres to be burned" means the number of acres that
may be burned pursuant to subdivision (c).
   (5) "Department" means the Department of Food and Agriculture.
   (6) "Maximum fall burn acres" means the maximum amount of rice
acreage that may be burned from September 1 to December 31,
inclusive, of each year.
   (7) "Maximum spring burn acres" means the maximum amount of rice
acreage that may be burned from January 1 to May 31 of the following
year, inclusive.
   (c) Notwithstanding Section 41850, rice straw burning in counties
in the Sacramento Valley Air Basin shall be phased down, as follows:

   (1) From 1998 to 2000, the maximum spring and fall burn acres
shall be the following number of acres planted prior to September 1
of each year:


             Maximum Fall Burn          Maximum Spring Burn
   Year            Acres                      Acres
   1998            90,000                    110,000
   1999            90,000                    110,000
   2000            90,000                    110,000


   (2) Notwithstanding paragraph (1), any of the 90,000 acres
allocated in the fall that are not burned may be added to the maximum
spring burn acres, provided that the maximum spring burn acres does
not exceed 160,000 acres.
   (3) Notwithstanding paragraph (1), the maximum acres burned
between January 1, 1998, and August 31, 1998, shall be limited so
that the total acres burned between September 1, 1997, and August 31,
1998, do not exceed 38 percent of the total acres planted prior to
September 1, 1997.
   (4) In 2001 and thereafter, the maximum annual burn acres shall be
the number of acres prescribed in subdivision (i), subject to
subdivisions (f) and (h).
   (d) The number of allowable acres to be burned each day shall be
determined by the state board and the air pollution control officers
in the Sacramento Valley Air Basin and equitably allocated among rice
growers in accordance with the annual agricultural burning plan
adopted by the air pollution control council and approved by the
state board.
   (e) On or before September 1, 2000, the state board, in
consultation with the department and the air pollution control
council, shall adopt regulations consistent with the criteria
provided in subdivisions (f) and (h).  On or before September 1,
1996, an advisory group shall be established by the state board and
the department to assist in the adoption of those regulations.
   (f) Commencing September 1, 2001, the county air pollution control
officers in the Sacramento Valley Air Basin may grant conditional
rice straw burning permits once the county agricultural commissioner
has determined that the applicant has met the conditions specified in
subdivision (h).  The county agricultural commissioner shall be
responsible for all field inspections associated with the issuance of
conditional rice straw burning permits.  A conditional rice straw
burning permit shall be valid for only one burn, per field, per year.

   (g) The county agricultural commissioner may charge the applicant
a fee not to exceed the costs incurred by the county agricultural
commissioner in making the determination specified in subdivision
(f).  This subdivision shall be operative only until January 1, 2009.

   (h) If the terms and conditions for issuing conditional rice straw
burning permits specified in paragraphs (1) to (4), inclusive, are
met, a conditional rice straw burning permit may be issued unless the
state board and the department have jointly determined, based upon
an annual review process, that there are other economically and
technically feasible alternative means of eliminating the disease
that are not substantially more costly to the applicant.  The terms
and conditions for issuing the conditional rice straw burning permits
are:
   (1) The fields to be burned are specifically described.
   (2) The applicant has not violated any provision of this section
within the previous three years.
   (3) During the growing season, the county agricultural
commissioner has independently determined the significant presence of
a pathogen in an amount sufficient to constitute a rice disease such
as stem rot.
   (4) The county agricultural commissioner makes a finding that the
existence of the pathogen as identified in paragraph (3) will likely
cause a significant, quantifiable reduction in yield in the field to
be burned during the current or next growing season.  The findings of
the county agricultural commissioner shall be based on
recommendations adopted by the advisory group established pursuant to
subdivision (e).
   (i) (1) The maximum annual number of acres burned in the
Sacramento Valley Air Basin pursuant to paragraph (4) of subdivision
(c) shall be the lesser of:
   (A) The total of 25 percent of each individual applicant's planted
acres that year.
   (B) A total of 125,000 acres planted in the Sacramento Valley Air
Basin.
   (2) Each grower shall be eligible to burn up to 25 percent of the
grower's planted acres, as determined by the air pollution control
officers in the Sacramento Valley Air Basin and subject to the
maximum annual number of acres burned set forth in paragraph (1), if
the grower has met the criteria for a conditional rice straw burning
permit.
   (3) The air pollution control council shall annually determine
which is the lesser of subparagraphs (A) and (B) of paragraph (1),
and shall determine the maximum percentage applicable to all growers
subject to the conditions set forth in subdivisions (f) and (h).
   (4) A grower who owns or operates 400 acres or less who has met
the criteria for the issuance of a conditional rice straw burning
permit may burn his or her entire acreage once every four years,
provided that the limit prescribed in paragraph (1) is not exceeded.

   (5) Nothing in this subdivision shall permit an applicant to
transfer, sell, or trade any permission to burn granted pursuant to
this subdivision to another applicant or individual.
   (j) The state board and the department shall jointly determine if
the allowable acres to be burned, as provided in subdivisions (c),
(f), and (h), may be exceeded due to extraordinary circumstances,
such as an act of God, that have an impact over a continuing duration
and make alternatives other than burning unusable.
   (k) "Administrative burning" means burning of vegetative materials
along roads, in ditches, and on levees adjacent to or within a rice
field, or the burning of vegetative materials on rice research
facilities authorized by the county agricultural commissioner, not to
exceed 2,000 acres.  Administrative burning conducted in accordance
with Section 41852 is not subject to this section.
   (l) (1) On or before September 1, 1992, the state board and the
department shall jointly establish an advisory committee composed of
10 members to assist with the identification and implementation of
alternatives to rice straw burning.  Members of the committee shall
be from the Sacramento Valley Air Basin, and the committee shall
consist of two rice growers, two representatives from the
environmental community, two health officials, two county supervisors
or their designees, one member from the air pollution control
council, and one member from the business community with expertise in
market or product development.  The committee shall meet at least
annually.  General Fund moneys shall not be used to support the
committee.
   (2) The committee shall develop a list of priority goals for the
development of alternative uses of rice straw for the purpose of
developing feasible and cost-effective alternatives to rice straw
burning.  These goals shall include, but not be limited to, research
on alternatives, economic incentives to encourage alternative uses,
and new product development.
   (m) On or before September 1, 1998, the state board, in
consultation with the department, the advisory committee, and the
Trade and Commerce Agency, shall develop an
                           implementation plan and a schedule to
achieve diversion of not less than 50 percent of rice straw produced
toward off-field uses by 2000.  Off-field uses may include, but are
not limited to, the production of energy and fuels, construction
materials, pulp and paper, and livestock feed.
   (n) On or before September 1, 1999, the state board and the
department shall jointly report to the Legislature on the progress of
the phasedown of, and the identification and implementation of
alternatives to, rice straw burning.  This report shall include an
economic and environmental assessment, the status of feasible and
cost-effective alternatives to rice straw burning, recommendations
from the advisory committee on the development of alternatives to
rice straw burning, the status of the implementation plan and the
schedule required by subdivision (m), progress toward achieving the
50 percent diversion goal, any recommended changes to this section,
and other issues related to this section.  The report shall be
updated biennially and transmitted to the Legislature not later than
September 1 of each odd-numbered year.  The state board may adjust
the district burn permit fees specified in subdivision (s) to pay for
the preparation of the report and its updates.  The districts shall
collect and remit the adjustment to the state board, which shall
deposit the fees in the Motor Vehicle Account in the State
Transportation Fund.  It shall be the goal of the state board and the
department that the cost of the report and its updates shall not
exceed fifty thousand dollars ($50,000).
   (o) The state board and the Department of Food and Agriculture
shall jointly collect and analyze all available data relevant to the
air quality and public health impacts and, to the extent feasible,
the economic impacts, that may be associated with the burning of rice
straw pursuant to the schedule provided in paragraph (1) of
subdivision (c).  On or before July 1, 2001, the state board shall
submit a report to the Legislature presenting its findings regarding
the air quality, public health, and economic impacts associated with
the burning of rice straw pursuant to the schedule provided in
paragraph (1) of subdivision (c).
   (p) The Legislature hereby finds and declares as follows:
   (1) Because of the requirements imposed by this section, rice
straw that was previously burned may present, as solid waste, a new
disposal problem.
   (2) The state should assist local governments and growers in
diverting rice straw from landfills by researching and developing
diversion options.
   (q) It is the intent of the Legislature that all feasible
alternatives to rice straw burning and options for diverting rice
straw from landfills be encouraged.
   (r) This subdivision confirms that reductions in emissions from
rice straw burning qualify for air quality offsets, in accordance
with paragraphs (1) and (2).
   (1) These credits shall meet the requirements specified in state
law and district rules and regulations, and shall comply with
applicable district banking rules established pursuant to Sections
40709 to 40713, inclusive.  Districts are urged to establish banking
systems in accordance with Sections 40709 to 40713, inclusive.  The
state board may adopt regulations to implement this subdivision,
including, but not limited to, consideration of the seasonal and
intermittent nature of rice straw burning emissions.  In developing
the regulations, the state board shall consult with all concerned
parties.  However, emission reduction credits that would otherwise
accrue from reductions in emissions from rice straw burning shall not
be affected or negated by the phasedown of burning, as specified in
subdivision (c).
   (2) Reductions in emissions achieved in compliance with
subdivision (c) that are banked or used as credits shall not be
credited for purposes of attainment planning and progress towards the
attainment of any state or national ambient air quality standard as
required by state and federal law.
   (s) (1) Any person who negligently or intentionally violates any
provision of this article is guilty of a misdemeanor and is subject
to a fine of not more than ten thousand dollars ($10,000),
imprisonment in the county jail for not more than nine months, or by
both that fine and imprisonment.  This subdivision applies only to
agricultural burning in the Sacramento Valley Air Basin.
   (2) Any person who negligently or intentionally violates any
provision in this article is liable for a civil penalty of not more
than ten thousand dollars ($10,000).  This subdivision applies only
to agricultural burning in the Sacramento Valley Air Basin.
   (t) Districts in the Sacramento Valley Air Basin shall impose fees
on growers to cover the cost of implementing this section pursuant
to Section 42311.
   (u) To the extent that resources are available, the state board
and the agencies with jurisdiction over air quality within the
Sacramento Valley Air Basin shall do both of the following:
   (1) Improve responses to citizen complaints, and, to the extent
feasible, immediately investigate and analyze smoke complaints from
the public to identify factors that contribute to complaints and to
develop better smoke control measures to be included in the
agricultural burning plan, keep a record of all complaints,
coordinate among other agencies on citizens' complaints, and
investigate the source of the pollution causing the complaint.
   (2) Respond more quickly to requests for update from county air
pollution control officers to help maximize burning days when
meteorological conditions are best suited for smoke dispersion.
  SEC. 37.  Section 41900 of the Health and Safety Code is repealed.

  SEC. 38.  Section 41981 of the Health and Safety Code is repealed.

  SEC. 39.  Section 42301.5 of the Health and Safety Code is amended
to read:
   42301.5.  (a) Any article, machine, equipment, or contrivance that
may emit into the ambient air any toxic air contaminant identified
pursuant to Section 39662 shall comply with any regulation adopted by
the state board or a district requiring a reduction in emissions of
that contaminant or chemical from the article, machine, equipment, or
contrivance consistent with a reasonable schedule of compliance, as
determined by the state board or the district.
   (b) (1) Any article, machine, equipment, or contrivance that is
located within a district that is designated by the state board as a
nonattainment area for any national ambient air quality standard and
for which an authority to construct is issued on or after January 1,
1988, shall comply with any district regulation that is adopted after
December 31, 1982, and that requires a reduction in emissions of any
air pollutant, including any precursor of an air pollutant, that
interferes with the attainment of the standard, from that article,
machine, equipment, or contrivance consistent with a reasonable
schedule of compliance, as determined by the district.
   (2) In determining a schedule of compliance under this
subdivision, the district shall consider the extent to which the
proposed schedule will adversely affect the ability of the facility
owner or operator to amortize the capital costs of pollution control
equipment purchased within the preceding five years.
  SEC. 40.  Section 42301.9 of the Health and Safety Code is amended
to read:
   42301.9.  For the purposes of Sections 42301.5 to 42301.8,
inclusive:
   (a) "School" means any public or private school used for purposes
of the education of more than 12 children in kindergarten or any of
grades 1 to 12, inclusive, but does not include any private school in
which education is primarily conducted in private homes.
   (b) "Air contaminant" means any contaminant defined pursuant to
Section 39013.
   (c) "Administering agency" means an agency designated pursuant to
Section 25502.
   (d) "Handle" means handle as defined in Article 1 (commencing with
Section 25500) of Chapter 6.95 of Division 20 of the Health and
Safety Code.
  SEC. 41.  Section 42314 of the Health and Safety Code is amended to
read:
   42314.  (a) Notwithstanding any other provision of any district
permit system, and except as provided in this section, no district
shall require emissions offsets for any cogeneration technology
project or resource recovery project that satisfies all of the
following requirements:
   (1) The project satisfies one of the following size criteria:
   (A) The project produces 50 megawatts or less of electricity.  In
the case of a combined cycle project, the electrical capacity of the
steam turbine may be excluded from the total electrical capacity of
the project for purposes of this paragraph if no supplemental firing
is used for the steam portion and the combustion turbine has a
minimum efficiency of 25 percent.
   (B) The project processes municipal wastes and produces more than
50 megawatts, but less than 80 megawatts, of electricity.
   (2) The project will use the appropriate degree of pollution
control technology (BACT or LAER) as defined and to the extent
required by the district permit system.
   (3) Existing permits for any item of equipment to be replaced by
the project, whether the equipment is owned by the applicant or a
thermal beneficiary of the project, are surrendered to the district
or modified to prohibit operation simultaneously with the project to
the extent necessary to satisfy district offset requirements.  The
emissions reductions associated with the shutdown of existing
equipment shall be credited to the project as emissions offsets in
accordance with district rules.
   (4) The applicant has provided offsets to the extent they are
reasonably available from facilities it owns or operates in the air
basin and  that mitigate the remaining impacts of the project.
   (5) For new projects that burn municipal waste, landfill gas, or
digester gas, the applicant has, in the judgment of the district,
made a good faith effort to secure all reasonably available emissions
offsets to mitigate the remaining impact of the project, and has
secured all reasonably available offsets.
   (b) This section applies to any project for which an application
for an authority to construct is deemed complete by the district
after January 1, 1986, only if the project's net emissions, combined
with the net emissions from projects previously permitted under this
section, are less than the amount provided for in the applicable
growth allowance established by the district pursuant to Section
41600.  If a district has not yet provided a growth allowance
pursuant to Section 41600, the growth allowance is zero.  For
purposes of this subdivision, "net emissions" means the project's
emissions, less any offsets provided by the applicant and less
utility displacement credits granted pursuant to Section 41605.
   (c) This section does not relieve a project from satisfying all
applicable requirements of Part C (Prevention of Significant
Deterioration) of the Clean Air Act, as amended in 1977 (42 U.S.C.
Sec. 7401 et seq.), or any rules or regulations adopted pursuant to
Part C.
  SEC. 42.  Section 42314.5 of the Health and Safety Code is amended
to read:
   42314.5.  In considering a permit for a facility that utilizes
agricultural waste products, forest waste products, or similar
organic wastes as biomass fuel in a steam generator (boiler) to
produce electrical energy, or to be used as a digester feedstock in a
cogeneration facility, the district shall allow offset credits as
provided in Sections 41600 and 41605.5.
  SEC. 43.  Section 42405.1 of the Health and Safety Code is amended
to read:
   42405.1.  (a) Any person who provides information  that materially
contributes to the imposition of a civil penalty or criminal fine
against any person for violating any provision of this part or any
rule, regulation, or order of a district pertaining to mobile source
emission regulations or limitations shall be paid a reward pursuant
to regulations adopted by the district under subdivision (f).  The
reward shall not exceed 10 percent of the amount of the civil penalty
or criminal fine collected by the district, district attorney, or
city attorney.  The district shall pay the reward to the person who
provides information that results in the imposition of a civil
penalty, and the city or the county shall pay the reward to the
person who provides information that results in the imposition of a
criminal fine.  No reward paid pursuant to this subdivision shall
exceed five thousand dollars ($5,000).
   (b) No informant shall be eligible for a reward for a violation
known to the district, unless the information materially contributes
to the imposition of criminal or civil penalties for a violation
specified in this section.
   (c) If there is more than one informant for a single violation,
the first notification received by the district shall be eligible for
the reward.  If the notifications are postmarked on the same day or
telephoned notifications are received on the same day, the reward
shall be divided equally among those informants.
   (d) Public officers and employees of the United States, the State
of California, or districts, counties, and cities in California are
not eligible for the reward pursuant to subdivision (a), unless
reporting of those violations does not relate in any manner to their
responsibilities as public officers or employees.
   (e) An informant who is an employee of a business and who provides
information that the business violated this part is not eligible for
a reward if the employee intentionally or negligently caused the
violation or if the employee's primary and regular responsibilities
included investigating the violation, unless the business knowingly
caused the violation.
   (f) The district shall adopt regulations that establish procedures
for a determination of the accuracy and validity of information
provided and for the receipt and review of claims for payment of
rewards.  All decisions concerning the eligibility for a reward and
the materiality of the provided information shall be made pursuant to
these regulations.  In each case brought under subdivision (a), the
district, the office of the city attorney, or the district attorney,
whichever office brings the action, shall determine whether the
information materially contributed to the imposition of civil or
criminal penalties for violating any provision of this part or any
rule, regulation, or order of a district pertaining to emission
regulations or limitations.
   (g) The district shall continuously publicize the availability of
the rewards pursuant to this section for persons who provide
information pursuant to this section.
   (h) Claims may be submitted only for those referrals made on or
after January 1, 1989.
  SEC. 44.  Section 36.5 of this bill incorporates amendments to
Section 41865 of the Health and Safety Code proposed by both this
bill and AB 2889.  It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2001, (2)
each bill amends Section 41865 of the Health and Safety Code, and (3)
this bill is enacted after AB 2889, in which case Section 41865 of
the Health and Safety Code as amended by AB 2889, shall remain
operative only until the operative date of this bill, at which time
Section 36.5 of this bill shall become operative, and Section 36 of
this bill shall not become operative.
